FP Corporation Report 2020

FP CORPORATIONFP Corporation forges links between people, society and the environment

through the manufacture and sale offood trays and containers.

FP Corporation's food tray and container manufacturing and sales businesses incorporate
activities to recycle Earth's resources, pursued in cooperation with consumers, distributors
and sellers, and businesses that utilize human resources with disabilities. In addition toconnecting people with one another in various culinary scenarios through the use of food trays
and containers, through our business activities we aim to help create prosperity and build asustainable society by forging links between people, society and the environment, and putting
our values into practice across all of these aspects.

FP Corporation’s Hands-on Approach and Customer-first Concept

in the Food Tray and Container
Manufacturing and Sales Businesses
With the aim of continuing to produce truly useful products in line with people’s
needs and the values of society, FP Corporation has committed to act upon
the principles of taking a hands-on approach and putting the customer first. By
continuing to consider what is important and what is required where food trays andcontainers are used, sold, manufactured, stored, transported and delivered, we
continue our persistent efforts to progress.

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FP Corporation Report 2020

CONTENTS◆ Corporate Profile◆ Message from Top Management◆ ESG at FP Corporation
E (Environment)
S (Society)
G (Governance)◆ Special Feature: Exploring the Utility of Food Trays
and Containers◆ The FP Corporation Value Chain
Procurement
Product Development
Manufacturing
Logistics
Sales
Recycling◆ Facts about FP Corporation
Third Party Comments

FP Corporation Report 20202

Corporate Profile

Company Profile
Name:
Established:
Representative:
Capital:Number of employees:
Business outline:

FP CORPORATION
July 1962
Morimasa Sato, President
13.15 billion yen
885 (FP Corporation Group: 4,484)
Manufacturing and marketing of disposable
food containers made of polystyrene andother compound resins; marketing of related
packaging materials
Fukuyama Headquarters: 1-13-15 Akebono-cho, Fukuyama-shi,
Hiroshima-ken, 721-8607 Japan
Tel.: +81-84-953-1145
Fax: +81-84-953-4911
Tokyo Headquarters:Shinjuku Oak Tower 36F, 6-8-1 Nishi Shinjuku,
Shinjuku-ku, Tokyo, 163-6036 Japan
Tel.: +81-3-5320-0717
Fax: +81-3-5325-7811

Fukuyama Headquarters (Fukuyama-shi, Hiroshima)

Tokyo Headquarters(Shinjuku-ku, Tokyo)

Our logo features the letters FP, whichsignify the first letters of the first two words
in Fukuyama Pearl Paper Manufacturing
Corporation, which was the name of ourcompany when it was established.

FP Corporation Group Companies
Sales, Others

Manufacturing
FPCO Hokkaido Co.

FPCO Ducks Co.

FP Trading Co., Ltd.

FPCO Yamagata, Ltd.

FPCO Ai Pack Co.

FP Chupa Corporation

FPCO Ibaraki Co.

FPCO ALRight Co. Ltd.

FPCO Dia Foods Co., Ltd.

FPCO Yachiyo Co.

FPCO Gravure Co., Ltd.

FPCO International Package Co., Ltd.

FPCO Shimodate, Ltd.

Nishinihon PET-Bottle Recycle Co., Ltd.

FPCO Ishida Co., Ltd.
FPCO Ueda Co.

FPCO Chikusei Co.
FPCO Toyama Co.

Logistics

FPCO Chubu Co.

FP Logistics Corporation

FPCO Kasaoka Co.

I-Logic Co., Ltd.

FPCO Fukuyama Co.

FPCO East Logi Co., Ltd.

FPCO Kannabe, Ltd.

FPCO West Logi Co., Ltd.

FPCO Miyako Himo Co., Ltd.

FPCO Kyushu Co.

Sites incorporating production plants, recycling plants, distribution centers, etc. (From left to right: Fukuyama, Chubu and Kanto)

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FP Corporation Report 2020

CORPORATE PROFILE

Main Products Manufactured and Sold by FP Corporation
General Purpose: Available in different sizes, colors and patterns
for various applications

Fresh Fish: Boosting the attractive qualities of fresh seafood

Eco Tray (recycled product)

Sushi: Delivering deliciousness to consumers without losing
freshness

Rice: Available in different sizes, colors and patterns for various

Meat: Hygienic and emphasizing the taste and color of meat

Deli: User-friendly with microwavable and other features

Clear Containers: Freshness and deliciousness is visible throughEvents: Ideal for joyful events where people gather

Hinged clear containers: For Namakara Sozai and other

Others: Paper containers, egg cartons, film products and moretransparent containers

proposals in pursuit of convenience

applications

FP Corporation Report 20204

Message from Top Management
The business management of FP Corporation is characterized
by the close linkage of its business operation and ESG efforts.
We create value throughout society through the manufacturing,sales and recycling of food trays and containers.

Two years ago, the home meal replacement
market surpassed 10 trillion yen. It continues toexpand as major restaurant chains and mediumand small-sized restaurants launch food takeout
and delivery services. In these circumstances,demand for food trays and containers is
growing to be able to provide food in a safeand reassuring manner. We at FP Corporationstrongly feel that manufacturing and selling thesecontainers is our social responsibility.
We are working not only to stably supply safeand reassuring food trays and containers but
also to provide value to society. Food trays andcontainers are useful and convenient in manydifferent ways. They provide supermarkets
and other food retailers with efficiency gains
in food arrangement, lid closing and display.
They provide consumers with food hygiene

Morimasa Satomanagement, freshness maintenance andPresident

reduction of the time required for cooking. In

the resulting reduction of food waste, and the
addition, we collect and recycle used products to
reduce environmental impact as well. We create
value for society through efforts like these in ourvalue chain.
This is how our business operations are closely
connected to ESG efforts in the management ofour business. I am convinced that our mission is
to continue to create value through our business.

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FP Corporation Report 2020

TOP MESSAGE
Recycling

Sales

Procurement

Propellingthe cycle of manufacturing,sales and recycling foodtrays and containers

The FP Corporation
Value Chain

Logistics

Product
Development

Manufacturing

FP Corporation creates extra value in every aspect of its products.
● Value chain for environmental impact reduction● Value chain for providing high value-added products

FP Corporation commenced sales of the environmentally
Another value chain that FP Corporation operates isfriendly Eco Tray formed tray in 1992. In 2007, wethe cycle of creativity that adds extra value to products.
To ensure the utility of food trays and containers, including
began collecting transparent containers. In 2012, wetheir ability to ensure hygiene, resist heat,released the Eco APET transparent
cold and oil, facilitate sales operations,containers containing recycled material
and reduce food waste and CO 2
fro m u s e d PET bo t t les , enabli ng
emissions, six separate functions that
their commercialization. We haveare important to our value chain propose
constructed a system of procuring
Eco Trayideas and our Product Developmentused products and PET bottles to beteam to continues to put them into
the materials used to make products,
tangible form. FP Corporation is uniquewhich reduces the environmental
in that it is not only the sales team,
impact. We also have independent
which often observes food sales operations, but everyone,logistical operations. They are a major driving force foreven the logistics team, which at first glance would seemthe recycling of resources. After delivering products, ourto have nothing to do with product development, thatempty trucks carry used containers back to us, a system
makes proposals on, for example, the shapes of products
made possible because we independently draw up
for higher efficiency when loading trucks with products.
logistics plans.

The value to society produced from these two value chainscontributes to the sustainable development goals (SDGs)
proposed by the United Nations.

FP Corporation Report 2020

6

ESG at FP Corporation FP Corporation’s business management

E

ENVIRONMENTSSOCIETY

G

GOVERNANCE

Indices of companies with distinguished performance
regarding the environment, society and governance (ESG)FP Corporation was added to two ESG indices,
the FTSE4Good Index Series and the FTSE
Blossom Japan Index, for the first time. (June 2019)

FP Corporation is one of

FP Corporation is one of

1,034 companies in the world. 179 companies in Japan.
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FP Corporation Report 2020

FP Corporation won an excellence
award in the first Japan Times ESG
Awards. (September 2019)is characterized by the close linkage of business operations and ESG efforts.

Environment
余余 Environmental initiatives throughout the group
余余 Results of CO2 emissions reductions by the recycling business
余余 Various publicity activities for the expansion of recycling
余余 Actions to combat the problem of marine plastic litter
余余 Active participation in global environmental conservation activities
余余 Information disclosure regarding responses to climate change

As a corporate citizen
余余 Employment of workers with disabilities as human assets
余余 Activities towards the realization of an inclusive society
余余 Support for the employment of persons with disabilities
余余 Community engagement in a wide variety of areas

Organizational governance
余余 Compliance
余余 Risk management
余余 Human resources management

FP Corporation began employing workers with disabilities in 1986 and began recycling usedfood trays in 1990. We have taken steps forward with the overriding belief that our activities thatcreate value for society in various ways without being swayed by immediate interests will lead tocorporate development. To continue to take powerful steps to follow the path set for us by ourpredecessors, we will place more focus on organizational governance in an effort to win greater
trust from society.

Kimiko Nishimura
Senior Vice President and Director,
Supervisor of General Affairs and Personnel Division,
Supervisor of Special Subsidiary Pursuing Business
Providing Type A Support for Continuous Employment,
Supervisor of Environment Management Department,
and Supervisor of Judicial Affairs & ComplianceDepartment

FP Corporation Report 2020

8

E

ENVIRONMENT

Env i ronm e nt
Environment

We installed our first collection box at a supermarket
in the city of Fukuyama in 1990. Thirty years on, we
now have around 9,400 used food tray and containercollection points across the country. Enjoying support
from many stakeholders, we have established theFPCO Method recycling system that propels the cycleof product recycling.

FP

Corporation

carriesoutenvironmental conservation andcore corporate activities as anintegrated business pillar.

FP Corporation Report 2020

colle
at
and

Sales of Eco Tray, Eco APET and Eco OPET recycledfrom used products significantly reduce CO2 emissions.
These environmentally friendly products have functions
that are completely identical to the functions of
products made from virgin raw materials.
We recommend that our customers,
supermarkets, introduce environmentally friendly products in theirstores.

Environmentallyfriendly products

reduce C02

emissions by approx.

160,000
tons / year

99

Lightermaterial weights

Material: HIPS

22.9 gOne third
as a result of changes ofmaterials and reductionsof wall thickness

Material: Foamed SP(low-foaming)

We a re c o n s t a n t l y t h i n k i n g
about ways of reducing theenvironmental impact of products,
including the reduction of weight
and wall thickness to reduce theamount of raw materials. To accomplish
this, we continue research and development
into materials and design improvements andexperiment to seek good combinations of materials
and purposes of use.

7.8 g

,390

ction points
supermarkets
other retailers

Lower stack heights
Approx.

45%

Helping reduce
environment impacts
from storage, packing
and transportation

Small improvements and changes
in perspective pave the way forputting more products in the same
space. These measures reducing
environmental impact are unique to
FP Corporation, since it handles bothwarehousing and transport itself.

Honor by the Minister of the Environment
Award for Global Warming Prevention Activity
in FY2015

Continuously
developing its
reputation insociety and earning
recognition

FP Corporation Report 2020

10

E

ENVIRONMENT

Environment

FP Corporation’s Environmental Policy

Environmental
initiatives
throughout thegroup

Basic Principle
Based on the recognition that preserving and protecting the global environment is an issue of thehighest priority, FP Corporation operates its business according to the basic principle of contributing
to the realization of a sustainable society in harmony with the environment.
Policy1. From the stance of reducing CO2 emissions and making effective use of natural resources, we strive
to thoroughly reduce the resources used in our business activities, products and services while
actively promoting the expansion of the FPCO Method Recycling business, which involves therecycling of used food containers disposed of from regular households into new food containers.
2. We will observe the legal and other requirements placed upon FP Corporation, endeavor tounderstand the needs and expectations of our stakeholders, establish voluntary standards in ouroperations and prevent pollution.
3. We will establish environmental goals that take the environmental impact of our business activities,
products and services into account, formulate and promote management plans, evaluate our
success through internal audits and reviews by senior management, and undertake continual
improvement.
4. We will promote the reduction of the amount of water resources used through the efficient use ofwater.
5. We will prevent environmental pollution due to chemical substances and waste, and environmental
risks that lead to health hazards.

Overview of environmental conservation activities
The FP Corporation Group believes that measures to address climate change form one of the basics of management.
In FP Corporation Eco Action 50 (FPEA-50), our environmental management plan, we have established five working
groups: Products, Production, Logistics, Sales and Office. These working groups establish their own goals and undertake
corresponding activities as part of the efforts to reduce total CO2 emissions across the FP Corporation Group. The working
groups repeat the process of exchanging information and working together with the aim of producing significant results
through a multiplier effect.

<Targets in Investment Processes>(1) Lighting equipment: Replacement with and introduction of energy-efficient fluorescent bulbs, LED lights and others(2) Air-conditioning equipment: Replacement of air-conditioning equipment, installation of inverter control units and others(3) Materials development: Research into resins that produce minimal CO2 emissions and others(4) Production and recycling equipment: Expansion of recycling plants, introduction of high-efficiency energy lines and others<Targets in Operational Processes>(1) Lighting equipment: Reconsideration of lighting duration, turning-off unnecessary lighting, and reconsideration of lighting
intensity(2) Air-conditioning equipment: Operation at reasonable temperatures, non-operation of unnecessary air conditioning, andcleaning of air conditioners, ventilation fans and others(3) Product development: Development of lighter products, research into reduced wall thickness, expansion of sales volume of
products made from recycled resins(4) Production equipment: Consideration of efficient production processes and increased procurement of recycled raw material

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FP Corporation Report 2020

Results of CO2
emissions
reductions by therecycling businessComparison in CO2 emissions between virgin
products and recycled products

Material
Manufacturing

1.58

Product
Manufacturing

1.07

Distribution

Waste

0.09

1.84

New Trays Made from Virgin
Materials

Polystyrene
resin

Styrene monomer

Ethylbenzene

BenzeneCracked petroleum

NaphthaWaste

0

CO2 reduction in FY2019

Approx. 160,000

0.03

1.34

Eco APET(Made Using Recycled Materials)

Processes skipped in FPCO
Method Recycling

Para-xylene

Distribution

Waste

0.03

Virgin APET plastic containers(Made from Virgin Materials)

Ethylene

-30%

0.63

Distribution

1.34

Tray to Tray

CO2emissions:

Product Manufacturing

0.63

Eco Tray(Made Using Recycled Materials)

Processes skipped in FPCO
Method Recycling

Product Manufacturing

1.0

0.09

1.84

1.45

2.0

Crude oil

Waste

1.0

Distribution

Material
Manufacturing

Tray to Tray

PET
resin

1.08

2.0

3.45

2.94

3.0

Ethylene glycol

Product
Manufacturing

Foamedpolystyrene trays

3.0

1.49 kg
Material
Manufacturing

PET
containers

4.58

3.53

4.0

Effect of Recycling on
CO₂ Emissions

4.94

4.0

kg-CO2/kg-plastic

Material
Manufacturing

Foamedpolystyrene sheets

kg-CO2/kg-plastic

1.96 kg

5.0

Crude oil

5.0

Ethylene oxide

6.54

6.0

FP Corporation Product Comparison

PET
sheets

Effect of Recycling on
CO₂ Emissions

Ethylene

7.0

0

Eco APETFP Corporation Product Comparison

Naphtha

Eco TrayHigh purity
terephthalic acid

CO2
emissions:-30%

The recycling business's effect on society
Foamed Trays

Transparent containers

PET bottles

WeightQuantity

WeightQuantity

WeightQuantity

FY20196,787 tons

1,696.75 million

2,341 tons

234.10 million

59,751 tons

2,390.04 million

Cumulative
total

151,876 tons

37,969.00 million

18,799 tons

1,879.90 million

272,300 tons

10,203.66 million(1990 to March 2020)* Calculated on the assumption that a foam tray weighs 4 g, a transparent container 10 g, and a PET bottle 25 g (after the revision in 2016 from 30 g).

Global resources conserved to date
Oil:

Garbage collection:

812.86 million liters

Approx. 74.5 billion yen

Oil drums
200 L

Social expenses reduced to date

Equivalent
to approx.

4.06

Collection vehicles
millionOil drums

Equivalent
to approx.

2.98

millionCollection
vehiclesAmount collected to dateTokyo Domes
Equivalent
the capacityof roughly

73

Tokyo
Domes

FP Corporation Report 2020

12

E

ENVIRONMENT

Environment

Organization of recycling plant tours

Various publicity
activities for the
expansion ofrecycling

FP Corporation organizes tours of its three recycling
plants, Kanto (Ibaraki Prefecture), Chubu (Gifu Prefecture)and Fukuyama (Hiroshima Prefecture) and of its six sorting
plants across the country, where food trays and containers are sorted. About 20,000 people participate in these
tours every year, including members of the public, people
from consumer organizations, media representatives andothers.

Collaboration with supermarkets
余余The setup of Eco Stations
An Eco Station is a place where consumers can bring many different
used products, including food trays and containers, milk cartons andPET bottles. FP Corporation provides support in setting up thesestations in supermarkets.

余余Publicity activities in stores
FP Corporation uses empty space in supermarkets to advertise its recycling activities. We offer programs open to
young children to share information joyfully.

余余Plant tours
Plant tour events organized by supermarkets for consumers are available at FP Corporation’s recycling plants.

余余Publicity activities at used food tray and container collection points
FP Corporation conducts publicity activities using posters and videos to raise awareness at locations with collection boxes.

Response to the Plastic Resource Recycling Strategy

13

Actions to combat
the problem ofmarine plastic
litter

Ministry of
Economy, Tradeand Industry

FP Corporation has been an executive committee member of the Japan Clean
Ocean Material Alliance (CLOMA) since it was launched in January 2019. As Vice
Chair of the Technology Working Group, it will fulfill its responsibility as industry
leader through the development of new materials and alternative materials in addition to its recycling technologies.

Ministry of theEnvironment

The Plastics Smart campaign is aimed at promoting smart ways of dealing with plastics,
such as the reduction of plastic emissions and the proper sorting of plastic waste all overthe country, and at disseminating information about these initiatives in Japan and aroundthe world. Its website features Tray to Tray and Bottle to Tray initiatives.

Ministry of Agriculture, Forestry
and Fisheries

As part of efforts to address plastic resource recycling issues while gaining the understanding of the public, theMinistry of Agriculture, Forestry and Fisheries has a web page on the Action Declaration on the Recycling of
Plastic Resources. It broadly invites industry associations and companies in agriculture, forestry and fisheries
sectors and in food industry to take voluntary actions helpful to the recycling of plastic resources. This web page
features FPCO Method Recycling as a voluntary action helpful to the recycling of plastic resources.

FP Corporation

On the basis of the idea that companies and associations must work as one totackle marine plastic litter and other environmental issues, the FP Corporation
Environment Fund has been established. It provides financial support for non-profit
and other organizations conducting activities for environmental conservation.

FP Corporation Report 2020

Events and others joined by FP Corporation in FY2019

Activeparticipation in
global environmental
conservation
activities

Participation as an exhibitor in G20 Innovation Exhibition
On June 14-16, 2019, FP Corporation presented in the zone for marine plastic litter issues
at the G20 Innovation Exhibition held in Karuizawa, Nagano Prefecture, which coincided with
the G20 summit. The presentations included a virtual reality (VR) experience of its efforts andits recycling plant. They drew the attention of leading figures from overseas.

Participation in the First Japan Clean Ocean Material Alliance (CLOMA)Forum
On July 8, 2019, CLOMA Forum was held to exchange information towards a resolutionof marine plastic litter issues. Kimiko Nishimura, Senior Vice President and Director of FP
Corporation, participated. She made a presentation about the company’s environmental
actions.

Participation in the Japan Climate Action Summit
On October 12, Japan Climate Initiative, headed by Takejiro Sueyoshi, an Independent
Outside Director of FP Corporation, hosted the Japan Climate Action Summit. At thesummit, members, including FP Corporation, released a declaration, according to which
Japan would be at the forefront of the world movement towards decarbonization.

Actions regarding the Task Force on Climate-related
Financial Disclosures (TCFD)*FP Corporation understands that climate change is an environmental issue that affects business activities. We will work
together with suppliers, retailers of products and other goods and other stakeholders to address climate issues towards
building a low-carbon society. In the future, we will gradually expand the disclosure of climate-related information andconsider supporting the TCFD.

Information
disclosure
regardingresponses toclimate change* The TCFD published its final report in June 2017. It recommended that business and other entities disclose items concerning climate-related risks and opportunities.

TCFD recommended disclosures

Governance
The organization’s governanceregarding climate-related risks andopportunities

Strategy
The actual and potential impact ofclimate-related risks and opportunities
on the organization’s businesses,
strategy, and financial planning

Risk Management

FP Corporation’s actions
The Environment Management Department, an organization specializing in the environment under
the direct control of the President, carries out monthly monitoring of sales of environmentally friendly
products helpful to the reduction of CO2 emissions, and progress in collection and recycling. The
director and supervisor of this department are in charge of the management of matters related toclimate change.
We analyze classification and details of climate-related transition risks, physical risks and opportunities
and estimate the level of their potential financial and other impact. We organize information regarding
the causes of risks and opportunities such as those mentioned below.
(1) Climate-related laws and regulations on production and distribution(2) Climate-related laws and regulations on FP Corporation’s products(3) Climate change -related services that compete with FP Corporation's products (e.g. a boycott oftrays)(4) Changes in consumers’ preferences (for recycled containers and sales without trays)(5) Climate information on large waves, torrential rains, earthquakes and other causes of physicalimpact on production facilities(6) Response to the marine plastic litter issue

The processes used by theorganization to identify, assess, andmanage climate-related risks

We have established a system of gathering information in different areas, under which, for example,
the sales team carries out market surveys while the environment and other teams conduct research on
regulations. Important matters are reported and shared at weekly meetings of executives responsible
for sections. The main risks we assess have financial impacts. We place a focus on cost increases,
revenue decreases and other events with significant financial impact in its assessment.

Metrics and Targets

The sales volume of environmentally friendly products that reduce life cycle CO2 emissions by 30%,
Eco Tray, Eco APET and Eco OPET, is defined as an indicator.

The metrics and targets used toassess and manage relevant climaterelated risks and opportunities

FP Corporation Report 2020

14

S

SOCIETY

S o c i e ty
As a corporate citizen

FP Corporation has been hiring employees with disabilities for 34 years.
We practice employment that is feasible in business terms for achieving aproper state of working and living.

Social reputation
for social
contribution,
management andothersEmployees with disabilities andother employees work together
towards the same target. This isa usual part of our workplaces.

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FP Corporation Report 2020

Femaleempowerment

Aiming for a female rate
of at
least
%
of total career-track recruitment(after 2019) and forfemalemanagers by
2022

30

50

Disability
employment rate:

13.3

%

Engaging in productmanufacturing
and recycling

Our activities for communication with society at large and oursocial contributions include local festivals, exhibitions about
the environment and business across the country, student
internships and providing training for elementary school
teachers. Most of these initiatives are linked with our business.
Our social activities are almost equivalent to our business
operations. This style holds true in this domain as well.

Participating inapprox.

100

eventsand regional programs
annually

FP Corporation Report 202016

SSociety

SOCIETY

Employment ofworkers withdisabilities ashuman assets
As of March 2020
Number of employees withdisabilities

Details

Physicaldisabilities
Intellectual
disabilities
Mental disabilities358
37 (including 16 with severe
disabilities)
316 (including 243 with severe
disabilities1)
5

Adjusted Number of
Employees with Disabilities2

615

Disability Employment Rate

13.3%

Container manufacturing

Recycling

Assembling of wood-like box-type containers for highgrade lunchboxes and others

Sorting of used food trays and containers collected at
supermarkets and other collection points.

Hiring employees with disabilities as a
powerful workforce(1) Including disabilities classified as severe under employment rules

FP Corporation began to employ people with disabilities in 1986. Since then, theirduties andthe scaleof their employment have expanded. Today, around 360
employees with disabilities operate as a powerful workforce
mainly for two companies in the Group, FPCO Ducks Co.
and FPCO Ai Pack Co. They engage in two major duties.
One is the manufacturing of small-lot products that are notsuited for large manufacturing plants and high value-added
products requiring manual work. The other is the manual
sorting of used food trays and containers. This process isessential to the recycling process. The skills of employeeswith disabilities are deployed in these tasks requiring highconcentration.
(2) Each person with a severe disability is counted as 2 and each parttime worker with disabilities as 0.5.

Enjoy playing floor hockey, a universal sport
FP Corporation has been engaging in floor hockey activities

Activities towards
the realizationof an inclusive
societythroughout the group since 2010. Floor hockey is a universal sport thatcan be played by everyone together irrespective of ability, age and gender.
Today, nearly 600 employees of the FP Corporation Group, including around 200 withdisabilities and some 400 without, take part in the activities in nine separate areas across thecountry. FP Corporation sponsors FPCO Cup tournaments held in different locations in an effort
to popularize floor hockey. At tournaments, FP Corporation Group employees volunteer tostaff and otherwise participate in the sport actively. We hope that these activities are helpful torealizing an inclusive society.

17

FP Corporation Report 2020

Support for theemployment of
persons withdisabilities

Helping business partners with employment of
persons with disabilities
FP Corporation offers as much knowledge regarding the employment of people withdisabilities as possible to business partners to answer their inquiries. We thus provide support
for employment as we aspire to help as many people with disabilities as possible to lead aproper life of working and living. As of March 2020, 667 job opportunities for people withdisabilities have been created at 50 offices, factories and other business facilities.

1
Inspection andmeasurement of fruit
2 Processing ofagricultural produce
3 Agricultural
production
4 Preliminary
seasoning of fresh
meat
1

2

3

4

Acquisition of the naming rights of the new
Fukuyama-shi general gymnasium
On May 24, 2019, FP Corporation acquired the naming rights of the new general gymnasium inFukuyama-shi at the ceremony for the signing of the agreement held at the Fukuyama City Hall that
opened in March 2020.
After renovation, it will be called FPCO Arena Fukuyama. The facility will continue to serve as a place
for sports, culture and information distribution as well as for recreation for the people of Fukuyama-shi.

Taking part in many different events and programs in FY2019
FP Corporation takes part in a wide variety ofevents, including local festivals and exhibition on
the subjects of the environment and business. We
also run student internships and provide training toelementary school teachers. Our communication
with communities is wide-ranging. In many cases,
our participation is for social contribution purposes
rather than publicity purposes.

Date

Event Name

Location

Organizer

Community
engagement ina wide varietyof areas

April 14, 2019

Clean Up the Tsu Beach Together

Mie Prefecture

Mie Prefecture
Lifelong Learning CenterMay 28, 2019

Fukuyama Rose Festival 2019

Hiroshima Prefecture

Fukuyama City

June 1, 20192019 Hachioji Environment Festival

Tokyo

Hachioji City

June 14-16, 2019

G20 Innovation Exhibition

Nagano Prefecture

Ministry of Economy, Trade andIndustry and Ministry of theEnvironment

August 18, 2019

Eco World Festival

Osaka Prefecture

Osaka ATC Green Eco Plaza

September 5, 2019Best Practices Introduction Seminar

Tokyo

CLOMA

September 8, 2019

Yasugi Kankyo Fair 2019

Shimane Prefecture

Yasugi City

September 28, 20192019 Fukuyama Science Festival

Hiroshima Prefecture

Fukuyama City University

October 5, 2019

Itami Environmental and Recycling
Fair 2019

Hyogo Prefecture

Itami City

October 9-11, 2019

Eco-Technology Exhibition 2019

Fukuoka Prefecture

Fukuoka Prefecture, Kitakyushu
City, and Kitakyushu Convention
and Visitors Association

October 29 toNovember 1, 2019

JAPAN PACK 2019

Tokyo

Japan Packaging Machinery
Manufacturers Association

November 26-28,
2019

EcoPro 2019

Tokyo

Japan Environmental
Management Association for
Industry (JEMAI) and Nikkei Inc.

November 4, 2019

Osaka ATC Junior Eco Club Exchange
Osaka Prefecture
Meeting

Osaka ATC Green Eco Plaza

November 16-17,
2019

Jibasan Fair 2019 - Rediscover
Manufacturing in Bingo

Hiroshima Prefecture

Local Industries Promotion
Center for Bingo

November 23, 2019

Clean & Sanfrecce 2019

Hiroshima Prefecture

Hiroshima Eco-Forum

November 30 to
December 1, 2019

Nagasaki Eco-Life Festa 2019

Nagasaki Prefecture

Nagasaki City Government

FP Corporation Report 2020

18

G G o v e r na nc e

GOVERNANCE

Organizational governanceHightransparency
in organizational
operation with the
choice of being acompany with an Audit
and Supervisory
Committee

Working on multi-faceted governance in an effort to secure
trust from all stakeholders.

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FP Corporation Report 2020

Annual Shareholder Meeting
Election and dismissal

Audit andsupervision<Audit and Supervisory Committee>
Directors who are members of the
Audit and Supervisory Committee

Submission
andreportingAppointment
andsupervision

Consultation

ReportRemuneration Consultation
Committee

Business execution section
Instruction

Representative Directors
Instruction

ReportingCorporate Management
Committee
Operation Meeting
Information Exchange
Meeting
ReportingInstruction

Reporting
ReportingInternal Audit
Department

Executive Directors incharge of operations
Operating Officers
Instruction

余余 Inside and outside contacts
f o r c o n s u l t a t i o n s re g a rd i n g
the abuse of authority, sexual
harassment and the like

Auditing
andmonitoring

Collaboration
Auditing

Reporting
AdviceLegal Counsel

余余 Internal audits by the Internal
Audit Department, which is anindependent body and under the
direct control of the President

Collaboration

Collaboration

Divisions, Departments and Group Companies

余余 Various education programs by
the Judicial Affairs & ComplianceDepartment

Election anddismissal

Board of Directors
Directors who are not members of
the Audit and Supervisory
Committee

Instruction

Compliance

Reporting and comments

Accounting Auditors

FP Corporation aims to achieve continuous
growth and increase corporate value overthe medium and long terms, and strives toenhance corporate governance by improving
the speed of management decision-making
while strengthening the functions that audit
and oversee directors in the execution of
their duties. We have therefore opted to be
a company with an Audit and Supervisory
Committee. Consisting of independent outside
directors and outside directors, the Audit
and Supervisory Committee fulfills the role ofsupervising management to ensure the highly
transparent management of FP Corporation.

Election and dismissal

Proposal and reporting

Risk
Management

Human
Resources
Management

余余 Response to product qualityrisks

余余 Operation of training programs
developing new employees

余余 Implementation of response
measures in the event of anatural disaster or emergency,
which have been increasing infrequency.

余余 Operation of training programsfor prospective managers

余余 Implementation of security action
programs to protect against
information leakage and others

余余 Implementation of programs foraddressing ESG matters, theSDGs and the creation of othercorporate value

余余 Programs for developing highly
technical work skills

FP Corporation Report 2020

20

G

GOVERNANCE

Governance
Organizations for compliance execution

Compliance• The Internal Audit Department, which is under the direct control of the President and which is independent
from the business execution section, for carrying out an internal audit annually.
• An outside helpline established at a law firm in addition to the inside contact for consultations regarding theabuse of authority, sexual harassment and the like
• The Judicial Affairs & Compliance Department for the examination of contracts and the dissemination ofcompliance information

Programs for ensuring compliance• Establishment of the FP Corporation Action Charter to stipulate the actions that should be taken by employees• Establishment of the FP Corporation Normative Rules for Compliance in accordance with the spirit of the FP Corporation Action
Charter• Construction of an environment that allows employees to view the codes of conduct mentioned above as necessary on theinternal network• Group-wide training for employees• Publishing of the Monthly Compliance Newsletter

Response to product quality risks

Risk
Management• Placing the highest priority on customer satisfaction, we carry out various
measures to implement, maintain and continue our Quality Policy aimed atcreating environmentally friendly products that can be used safely and withpeace of mind.
• Sixteen of our production plants have acquired FSSC 22000 food safety management
certification as of the end of March 2020. We will work to obtain this certification for our 21
main plants in the future.

Measures in the event of natural disasters andemergencies• All employees are required to carry their Disaster Handbook with them. We have also taken
measures such as providing emergency equipment including helmets and first-aid supplies,
implementing a safety confirmation system that is activated in the event of a disaster andinstalling priority telephone systems.
• Emergency power generating equipment has been installed at the Fukuyama Headquarters
and distribution centers to ensure a 72-hour power supply. In addition, we will use an
outside data center in an emergency.

Measures to prevent accidents, hazards andinformation leakage and security measures• We have set up the Safety and Health Committee beyond the boundaries of departments
and group companies to prevent accidents. In addition, we conduct regular evacuation
drills at production and recycling plants, run the Forklift Accident Elimination Project andprovide safety training, including VR-based hazard experience using a mobile containerhouse and safe operation training.
• We have installed security gates at large complex facilities that integrate production plants
and distribution centers. We make regular backups of computer data, introduce duplex lines, employ systems to prevent e-mailmessages destined for outside addresses being sent to the wrong recipients, and contract specialists to dispose of computers.

21

FP Corporation Report 2020

HumanResources
Management
Training programs
FP Corporation offers various training programs with the aim of developing
employees into strong assets. They include Next-Generation Training, whichlasts about half a year, One-on-One Leader Training Sessions that develop
mentors who will provide training to new employees, training designed
to deepen understanding between female managers and supervisors,
training for managerial candidates, Accounting Department training to honepractical accounting and finance skills, and environment-related training
where participants learn about the creation of corporate value through nonfinancial activities related to ESG and the SDGs.

Activation of the organization through internal and external
exchange
FP Corporation also offers programs that activate thewhole organization through exchange with others.
They include joint training sessions with companies
in different industries on the subject of learning new
perspectives through exchanges with them, and training
sessions conducted in Hawaii for FP Corporation Group
employees.

Prevention of COVID-19 coronavirus infections
Countermeasures
The FP Corporation established the FP Corporation Group COVID-19 Countermeasures Headquarters headed
by Morimasa Sato, President of FP Corporation, on February 21, 2020. We have been taking measures suchas thorough actions to prevent infection within the Group, including taking employees' temperatures, handwashing and disinfecting, collecting information released by government organizations, and promoting newworking styles that may include commuting outside rush hours and IT-enabled working from home. We willcontinue to take the necessary measures without becoming complacent.

Fulfillment of our responsibility to supply food containers
FP Corporation understands that it has a social responsibility to ensure the stable supply of food trays andcontainers used for wrapping and transporting food even during the COVID-19 pandemic. We will steadily
implement our unique supply chain management system as usual to carry out day-to-day operations witha sense of mission to support people’s safety and peace of mind in their consumption of food. Even during
emergencies, we will unfailingly deliver the products that are wanted when they are wanted.

FP Corporation Report 202022

Special Feature:

Exploring the Utility ofToday, food trays and containers are usually used, and we have few
opportunities to think about the significance of using containers.
As a food container manufacturer, we are now exploring why foodtrays and containers are commonly used in everyday life.

At the moment, there are around 55,000 convenience stores and around22,000 supermarkets in Japan. In addition, department stores have foodsections in their basements and shopping streets have some stores selling
prepared food. Most of them use food trays and containers. They help those
who sell, purchase and consume food.

23

FP Corporation Report 2020

Food Trays and Containers
Food Trays and Containers, Responding to the Needs of Society
Food trays and containers evolved in line with lifestyle needs that have shifted with changes in the social structure.

Supporting effective sales of food after economic development
In the 1960s and 70s
High economic growth and spread of supermarkets

In the 1980s and 90s
Economic bubbles, emergence of convenience
stores and home meal replacements

Food trays for self service

Containers for selling packed lunches and prepared food

Simple trays were wanted as a tool for selling food in large
quantities at supermarkets and other retailers.

Needs emerged for containers to hold packed lunches sold atconvenience stores and containers with lids for prepared food.

Adapting to diversification of eating following changes in lifestyles
From the 2000s to present
Shortened time for housework and growth of homemeal replacements as more women join the workforce

Namakara Sozai

Microwavable

These popular containers are so convenient that fresh foodmaterials packed in them can be microwaved as they are andthat food materials purchased can be heated as they are.

High environmental awareness

Growing interest in enjoying good foodand pursuit of deliciousness

Food combinations
Products seeking quality of food relish by putting rice separate
from main food to avoid impairing their respective tastes andflavors

Reduction of food waste, increase in single-personhouseholds and aging

Environmentally friendly recycled productsContainers for individual meals

Product made using recycled containers, such as Eco Tray
formed products and Eco APET and OPET transparent
containers, play a significant role in CO2 reduction.

Increasingly containers are designed to provide convenience ineating for those living alone and to reduce leftovers.

FP Corporation Report 202024

Special Feature:

Exploring the Utility ofCompatible with food supply chain

Today, food trays and containers are indispensable to mostprocesses of the supply chain, including food production,
distribution and sales.

Food production and transport
After a seafood catch is landed, food trays and containers
are used to keep its freshness until the products are soldat the market. They are also used for storing vegetables,
fruit and other agricultural produce that easily lose shape.

Preventing blemishes

Preserving freshness

Food processing and manufacturing
Food trays and containers are essential in the processof separating food produced in large quantities into
small portions that are easier to sell as goods and in
the process of applying labels that specify consume-bydates and other information.

Separating into small
portions as goods for sale

Information labeling

Preventing blemishes

Preserving freshness

Display and sales
High work efficiency
Hygienic
Mass display
Display with noticeability
Information labeling
Food processed behind the selling spaces canbe directly displayed. With the working population
now contracting, they help increase work
efficiency.

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FP Corporation Report 2020

Products may be stacked in layers ina hygienic way. It means that a lot of
products may be displayed. Food trays
and containers are useful in displaying
products in a manner in which products
are easily noticeable.

Preventing blemishes
Preserving freshness

Food Trays and Containers
FP Corporation has been manufacturing and selling very useful food trays and containers matched with people’s eating
lifestyles that vary with the times to meet social needs. From the period of rapid economic growth to the period of therise of convenience stores after the economic bubble, what was wanted in themarket was relatively clear. However, from 2000 onwards, eating lifestyles
diversified and it is no longer the case that there is only one right answer tomeet the needs of society. We have since been making a broad range ofsuggestions. In some cases, one proposal arouses mixed reactions.
Under these circumstances, we listen to our client supermarkets andconsumers and distribute accurate information about food trays
and containers. Under the principle of offering more convenientand useful products, we aspire to continuously serve society.

Koji Oka
Senior Vice President and Director,
Integrated General Manager of Integrated
Special Sales Department, Supervisor of ProductDevelopment Planning Department, Supervisor of
Sales Information and Store Sales Department

Purchases, takeouts, consumption and recycling

Easily portable

Hygienic

Freshness can be viewed.

Contents do not shift.

Today, it is so common to use food trays and containers ineveryday shopping at supermarkets and at convenience
stores that we often overlook their convenience and utility
while leading our daily life. You check the freshness anddeliciousness of food and then purchase it. You take ithome hygienically and consume its necessary portion andpreserve the remainder. It is food trays and containers thatpave the way for these things you may take for granted.
For the purpose of making this convenience sustainable,
we recycle used products with the help of many different
parties.

Useful to preservation

Friendly to the environment

FP Corporation Report 202026

Corporation’s unique value chain
The FP Corporation FP
continues to create social value andValue Chainbring its business operations closer
to ESG efforts.

Combination of a series of processes
c o n s t i t u t i n g F P C o r p o r a t i o n ’s
supply chain with such factors

Nationwide
recycling network

as product recycling, in-house
distribution, proposal-oriented
sales and employment of workers
with disabilities as human assets
transforms the supply chain into a
recycling-oriented value chain thatwill continue to produce social value.

Unique sales
communications at
the FPCO Fair

Our business operation means toSales

run the value chain that continuously
creates social value. In a bid to
expand this activity, all employees
at the FP Corporation Group are
making everyday efforts.

Proposing selling
approaches and sellingspaces that utilize FP
Corporation products
from customer
viewpoints

Sales philosophy
with a consistentfocus on the hands-on
approach based on the
belief that customers
have the answers

Various measuresto achieve accuracy
in delivery time27

FP Corporation Report 2020

High efficiency voice
picking system withnear-zero errors

e

The FPCO
Method Recycling
Based onCollaboration
between FourParties

Regarding usedproducts asterrestrial resources
and recycling themfor raw material
procurement

Ensuring thatrecycled materials
can be used safely
and without worries
as raw materials for
products

Product development
for consumers andsellers based on ahands-on approach

High utility
products madefrom materials
with diverse
characteristics

Procurement

Recycling

Propelling the cycle ofmanufacturing, sales andrecycling food trays andcontainers

Product
Development

The FP Corporation
Value Chain
Logistics

Higher value-added
products reflecting
design and shapeenhancements

Manufacturing
Nationwide
operations enabling
stable supply andflexible response

Independent
warehousing andtransportation
operations forappropriate response
to customer needs

Strict inventory
management
and thoroughstreamlining of cargo
movements

Preparedness forsmall-lot and otherproduction leveraging
the capabilities of
employees withdisabilities

Production planningand processes inpursuit of efficiency andenergy conservation

FP Corporation Report 2020

28

The FP Corporation Value Chain

Procurement
Propelling the cycle of manufacturing, sales and recycling foodtrays and containers

The FP Corporation Value Chain

Procurement is the first process in the value chain. It
deals not only with safe andreassuring virgin materials
but also with recycled materials, which we call terrestrial resources, produced
from the recycling process.

FP Corporation’s CSR Procurement Policy
1. Quality Standard

4. Consideration of Social Issues

In providing high-quality products and services in a manner that

We will respect basic human rights, consider occupational healthis valuable, safe and secure for customers, our procurement

and safety, and endeavor to do business with and procure products

activities will place the highest priority on quality and safety inand services from suppliers that do not engage in human rights

keeping with the Group Quality Policy while also placing an

violations such as unfair discrimination, forced labor or child labor.

emphasis on cost.

5. Environmental Considerations

2. Fair Trade

Based on the Group’s Environmental Policy, we will promote

We will give comprehensive consideration to economic

initiatives to reduce our environmental impact, and endeavorrationality, appropriate quality, strict adherence to delivery

to do business with and procure products and services

deadlines, compliance with social norms, care for social issues,

from suppliers that contribute to controlling or alleviating

environmental concerns and so on, and select suppliers in aenvironmental issues such as climate change and biodiversity.

fair and transparent fashion. Without a valid reason, we will

6. Cooperating with Suppliers

not show favor to or unjustly disadvantage specific business
partners.

In order to give consideration to social issues and theenvironment throughout the supply chain in the course of

3. Compliance with Laws and Regulations

procurement, we will forge long-term relationships of trust withIn the course of our procurement activities we will respect laws

suppliers and work towards coexistence and co-prosperity. We

and social norms and not violate them under any circumstances.

will work with suppliers to thoroughly implement proper risk

We will not maintain ties of any kind with antisocial forces, andmanagement and prevention, and pursue initiatives to avoid

will repudiate any and all unreasonable demands.

impacting society and company management.

Significant in the procurement process are the safety and security of raw
materials, stable supply and environmental considerations. I am proud that FP
Corporation has steadily fulfilled its responsibility in these aspects. However,society is now changing rapidly. Planning and actions in view of the future
are always needed. The roles that the procurement section at the startof the value chain has to play are more and more significant year afteryear. They include gathering information on overseas examples of theuse of biodegradable and biomass plastic materials for studying
the adoption of such materials, exploring development basedon paper in a totally different direction, and considering a new
business framework for continued growth of material recycling.

Hiroshi Ogawa
Executive Director,
Executive General Manager of Purchasing Division

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FP Corporation Report 2020

Regarding usedproducts as terrestrial
resources and recycling
them for raw material
procurement

余余FP Corporation’s original production system that facilitates independent raw
material procurement
Our production plants at Kanto and Chubu each have PET recycling centers. There, pellets and flakes
recycled from PET bottles and transparent containers are conveyed by air as raw materials to production
plant buildings. Direct procurement routes have thus been constructed instead of transportation bytruck. This system literally brings FP Corporation's recycling-oriented value chain to completion. (Thebottom right photo portrays rolls of sheets for transparent containers produced using recycled material.)

余余Ensuring safety of materials for food trays andcontainers

Ensuring thatrecycled materials
can be used safely
and without worries
as raw materials for
products

Plastic food trays and containers are subject to many different safety
regulations, including the Food Sanitation Act, the Food Safety Basic
Act and the industry’s voluntary standards. FP Corporation ensures thesafety and hygiene of its food containers through its compliance withnational laws and regulations, official standards, more stringent voluntarystandards established by the industry, and its own regulations. The Eco
APET recycled raw material plant has obtained a “No Objection Letter”(NOL) from the United States Food and Drug Administration (FDA), aworldwide authority on safety standards.

余余Research and development of new materials
The FP Corporation Group is working to expand recycling since it has established its recycling technology and system for single
materials. It also studies materials that are not derived from crude oil as options on the assumption of technological advancement.
We collect information about paper, biomass and other materials and carry out research and development of different recycling
approaches as well as containers incorporating environmentally considered design to achieve the industry’s lowest-class environmental
impacts with a view to building a recycling-oriented society and to construction of a sustainable society.

FP Corporation Report 2020

30

The FP Corporation Value Chain

Product development
Different combinations of materials, forms, elaborate designs,
pairings of containers with lids
and other parts, colors and patterns create high value-added
tray and container productswith excellent utility that are
best suited to their respective
applications.

Propelling the cycle of manufacturing, sales and recycling foodtrays and containers

The FP Corporation Value Chain

Heat and cold resistanceand heat insulation

Forms that prevent theleakage or sliding ofcontents

Microwavable

Materials and designs for
an attractive look

Free of deformation under highor low temperature conditions
and able to maintain the temperature of food

Carrying food stably and maintaining its shape

Opening the way for the microwaving of food in containers

Accurately displaying the deliciousness, freshness, color andflavor of food

Friendly to theenvironment

Lower operation costs

Recyclable after use to reduce
CO2emissions

Enables the quick display ofgoods and useful for storage
behind selling spaces

We are constantly working to improve existing products and to create new functions and added value. Now, we arefocusing on the securely closing feature and the development of containers for delivery.
The securely closing feature is a technology that attains high performance in two
conflicting functions, ensure that containers can be tightly closed and also easily
opened. This increases work efficiency for retailers and makes the containers
user-friendly for consumers. We are working to develop containers for delivery
with a three-layer structure that enhances heat retention and seals in air. Thesefeatures are aimed at satisfying the current needs of the delivery industry.
Our business activities are changing all the time, with the trends of thetimes.

Hiroyuki Muraoka
Operating Officer, Deputy Executive General
Manager of the Manufacturing Division (incharge of the West division),
General Manager of Research &Development Department

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FP Corporation Report 2020

Productdevelopment for
consumers andsellers based on ahands-on approach

Research into needs in selling spaces
The hands-on approach is based on the ideathat valuable information related to manufacturing

and sales is found where the sales take place, and thatclues to answering needs can be found by continuously andcarefully watching these places. FP Corporation’s sales team places
an emphasis on its frequency of visiting customers. It is recommended
that sales staff visit food selling spaces at least 100 times a month.
Product development therefore originates from the sales personnel
who observe food sales practices in detail.

The Product Development Planning Department transforms needs into images
Information is collected by the sales staff in places where packed
lunches, prepared foods and other foods are manufactured and places
where food is sold, such as supermarkets. It is then passed to the
Product Development Planning Department. To give shape to divided
ideas and abstract concepts, the Product Development Planning
Department creates design drawings using simple software. In somecases, it makes models of containers from paper clay and does othermanual work. Its duty is to materialize the demands of food retailers forcontainers with specific conveniences and functions.

The Research and Development Department makes these images into tangible forms
The task of the Research and Development Department is to create
design drawings incorporating usefulness and other utility featuresof the containers imagined by the Product Development Planning
Department, and create prototypes, developing them into finishedproducts. The process from the creation of a design drawing to thecompletion of a container takes from two months to half a year. FP
Corporation creates as many as 2,000 new products each year. The
Research and Development Department also inspects the safety ofmaterials.

Sales staff introduce products onto the market
Sales staff gain ideas by observing the practices of food retail. These
ideas are developed into products and given an opportunity to play
an active role in food sales operations. Thousands of products are
introduced onto the market each year. However, consumers’ lifestyles
are changing all the time and accordingly the qualities desired fromfood trays and containers change as well. Our efforts to develop
products continue to deliver high value-added products with features
providing more utility.

FP Corporation Report 2020

32

The FP Corporation Value Chain

Product
development

Original materials developed by FP Corporation
have paved the way for food sales approaches that
had been impossible in the past.

High utility
products madefrom materials
with diverse
characteristics

余余MULTI FP

余余MULTI SD

The product has both the heat resistance necessary for micro-

This product features excellent heat resistance making it suitablewave heating (110 °C) and cold resistance. With excellent heat

for microwave heating (110°C). As this is a non-foam material

insulation and retention, even when the contents are heated in aoffering superior formability, designs featuring sharp, complex

microwave, the outside of the food container stays below 70°C.

forms can be created.

Even when the foodinside is hot, there isno need to worry aboutburning your hands
when holding the container.

余余TRANSPARENT PP余余OPET

This transparent container is highly heat and oil resistant. It is

Strength and heat resistance are enhanced by stretching thehardly deformed when heated in a microwave. Warm prepared

PET material biaxially to align the molecules. In addition to oilfood can be heated in this container. The polypropylene does notresistance, the transparency is maintained and the conventional

become brittle and is not damaged when it comes into contact

60°C heat resistance of APET material is increased to 80°C.

with MCT oils.

余余Containers that allow consumers to enjoy
freshly cooked meals prepared by heating
fresh materials
This container facilitates the development of menus and余余Container with a three-layer structure to retain
deliciousness

products that involve packing raw ingredients which can be

The container with a three-layer structure has been developed

heated in a microwave while still in the container immediately

to hold noodles for delivery to meet recent demand. From

before eating. This makes full use of the texture, flavor and

top to bottom, the container consists of a lid, an inner tray

goodness of the ingredients while giving consumers the taste

for noodles and ingredients and a base container for soup.

of a freshly cooked meal.

Its heat retention performance is so high that the soup isslow to become cold. The inner tray has a steam vent hole. It
is useful for reheating.

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FP Corporation Report 2020

余余Containers for food combinations
By packing rice and side dishes with a lot of juices
separately, each can be provided without losing individual
deliciousness and texture. They have helped launch a new
category of packed lunches with simmered food sought byconsumers. The containers allow various combinations ofrice and side dishes, enabling an extensive range of menu

Higher value-added
products reflecting
design and shapeenhancements

options to be provided.

余余Containers designed to prevent contentsfrom shifting
The bottoms of containers are equipped with projections
and depressions forming guides that help arrange fooditems. They prevent the contents from moving when sales
staff display goods and when consumers take them home
after purchase.

余余Containers that are easy to stack to conserve space
Made from non-foam materials with excellence in formability, these containers may havecomplicated, sharp forms. Another benefit is the small amount of space taken up when
the product is stacked.

余余Containers with lids that are easy to close
The closing part of food container lids has been an issue that has yet to be resolved,
with greater sealing performance desired. If the lid is firmly closed, it is difficult to open.
If it is not, the safety of the food cannot be ensured. Our containers with lids that havethe securely closing feature make an audible click when the lid is closed. They feature astructure that enables the lid to be easy to open while it does not easily fall off.

余余Containers that enhance the joy of eating
The Bisai series and the Tosai series sashimi containers have been introduced onto the market. Their selling point is their high-classappearance, like real tableware. They are created from our humble aspiration to make eating happier and always more cheerful.

FP Corporation Report 2020

34

The FP Corporation Value Chain

Manufacturing
FP Corporation engages inmanufacturing through elaborate
planning in its operation of large
production plants across thenation, as well as its other facilities
and personnel.

Propelling the cycle of manufacturing, sales and recycling foodtrays and containers

The FP Corporation Value Chain

Input 1
Factors related to
production

Input 2
Sales forecast

Input 3
Factors related tomaterial procurement,
distribution, and delivery

Manufacturing at FSSC certified plants
Kanto Shimodate Extruding Plant I Kasaoka Plant I
Kanto Shimodate Forming Plant I Kasaoka Plant II
Kanto Shimodate Plant II

Kannabe Plant I

Chubu Plant I

Kannabe Plant II

Chubu Plant II

Fukuyama Plant (PS-6)

Chubu Eco PET Plant

Supply Chain Management (SCM) System
Based on the above three inputs, plans to execute the following in themost efficient way are calculated

The plants listed above have acquired the
Food Safety System Certification (FSSC),
an inter national standard for food safety
management systems. The FSSC is approved

Production

Transportation between FP’s warehouses
Metal mold moving

as a benchmark standard by the Global

Inventory management

Food Safety Initiative (GFSI), an internationalorganization.

FP Corporation can boast of its supply chain management (SCM) system that maximizes
product manufacturing efficiency. Its advantage is that efficiency can be
maintained with high precision through the information entered and conditions
recorded at different times enabling flexible responses to be taken on thebasis of the experience of manufacturing staff. We endeavor to secure aworkforce capable of maintaining the efficiency of this system, and toachieve automation as a solution to the labor shortage problem. We haveintroduced automation in detailed manufacturing processes, such as theautomatic joining of sheet rolls for seamless feeding of the sheet used
to produce containers. The accumulation of these efforts leads togreat results.

Nobuyuki Nagai
Executive Vice President and Director,
Executive General Manager of
Manufacturing Division

35

FP Corporation Report 2020

Nationwide
operations enabling
stable supply andflexible response

Staff of production plants in Kanto (bottom left), in
Chubu (top) and in Fukuyama (bottom right) They
all practice SCM on shop floors.

Hokkaido Plant

Chubu Eco PET Plant

Yamagata Plant

Toyama Plant
Kasaoka Plant
Chikusei Plant

Kannabe Plant

Kanto Shimodate Plant
Kanto Yachiyo Plant

Fukuyama Plant

Kanto Eco PET Plant
Kanto Plant

Kyushu Plant

Chubu Plant
Kinki Kameoka Plant
Shikoku Plant
Kagoshima Plant
Nango Plant

The production plants in Kanto (top left), Chubu (bottom left) and Fukuyama (right) are integrated
with distribution centers and recycling centers, creating large complex facilities. They serve thebig commercial zones of Kanto, Chubu and Kansai, and Chugoku and Shikoku respectively.

FP Corporation Report 2020

36

The FP Corporation Value Chain

Manufacturing
余余Centralized production management with the supply chain management
systemFP Corporation conducts most processes in its supply chain on its own, including materials
procurement, product planning and development, manufacturing, delivery, sales and recycling. It istherefore capable of constructing a supply chain management (SCM) system in consideration of all

Minimizing CO2 emissions in production

these activities. This comprehensive SCM system paves
the way for the most efficient planning of all work processes
involved in product manufacturing.

Avoiding excess production and more inventory than needed

We develop production and distribution plans after forecasting
where there will be shortages of products, how significant the

Avoiding stock-outs during busy times and surpluses during slow times

shortfall will be, when and at which factory. The SCM system
also allows us to supply products stably without stagnation in

Responding to disasters and other unforeseen events

consideration of sudden orders from customers, unexpected
rises in market demand, disasters and other unforeseen events.

Taking into consideration distribution and recycling activities associatedwith production

Production planningand processes inpursuit of efficiency
and energy
conservation

Our SCM Division is at the Fukuyama Headquarters. It is at
the center of the office, a brain that directs all our businesses.
Instructions on production are generally issued on a weekly basis.
When it is necessary to adjust production volume, the SCM
Division and production plant staff discuss it before making adecision. While the SCM is a superb brain, it operates meticulously
in concert with the shop floor staff who carry out the plan.

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FP Corporation Report 2020

余余Introduction of robots to increase efficiency and to address labor shortages
Today, labor shortages are a major issue that must be surmounted to ensure the stable supply of products. FP Corporation's production
plants are introducing robots in as many processes as possible with as much variation in these processes as possible. At the moment, anaverage of around 2.5 employees are assigned to each manufacturing line. We are working to reduce this to one.
(1) After cutting, products(2) P a c k e d p r o d u c t s

are packed into plastic

are lifted by a robot

bags by the automatic

arm for containers.

packaging machine.

A predetermined

Then, they are trans-

number of products

ported by conveyor.

a re p l a c e d i n t o a
cardboard case.

(3) Cases of products are(4) C ases of products

loaded onto an auto-

are successively

matic guided vehicle

loaded onto the con-

(AGV) and carried aveyor and collectedshort distance to theat a depot.

conveyor.

余余Human resources development to support
manufacturing
FP Corporation has a program it calls the Monozukuri Project.
It is aimed at developing the skills of employees working at
production plants. Employees are given training and otherassistance to improve their skills. The Gino Juku training
program is part of this training. Trainees who have completed

Red lines

Blue lines

Green lines

Yellow lines

Section leader
Sub-leader

Regular operator

Assistant operator

Apprentice
operator
Checker

it are awarded an emblem that represents a rank based on thenumber of training sessions taken and the type of course. Thisrank system serves as motivation for the employees working onshop floors.

余余Employees with disabilities engaging in smalllot production
As mentioned in the ESG section, FP Corporation has apowerful workforce including a large number of employeeswith disabilities assigned to production. They engage inthe manufacturing of small-lot

Preparedness
for small-lot and otherproduction leveraging
the capabilities of
employees withdisabilities

products that are not suited formass production and high valueadded products requiring manual
work. These include high-grade
containers for packed lunches
sold at food selling spaces in thebasements of department stores.

FP Corporation Report 2020

38

The FP Corporation Value Chain

Logistics

Leveraging our independent
logistics operations, we continue
to unfailingly deliver needed
products when they are needed.

Propelling the cycle of manufacturing, sales and recycling foodtrays and containers

The FP Corporation Value Chain

FP Corporation’s logistical services featuring independent
warehousing and transportation operations

Purchased goods

FP Corporation products■ Warehousing operations

Picking Center

Distribution Center

The picking of FP Corporation
products together withpurchased goods

Optimal,accurate vehicle
assignment with highloading efficiency■ Transportation operations

Customers

We regard logistics operations to be service operations that offer great satisfaction tocustomers beyond the mere transport of goods. Thus, we have made efforts to improve operational precision. The introduction of voice picking and automatic guided
vehicles (AGVs) are part of these efforts. Today, we face the challenge of responding to labor shortages, which are major social issue. We are currently planning to
examine the details of work and to unearth information about which personnel
are individually suited to such specific tasks, to disperse our centers to shorten transportation distances and to improve work efficiency by shifting totransportation using pallets. If human power is in short supply, we must
make up for it with something else. We believe that active efforts todiscover solutions to social problems are part of the role that service
operations have to play.

Satoshi Koizumi
President and Representative Director,
FP Logistics Corporation / I-Logic Co., Ltd.

39

FP Corporation Report 2020

■ Picking Centers

Picking Centers

Hokkaido Picking Center (Ishikari-shi, Hokkaido)
Tohoku Picking Center (Ohira-mura, Miyagi)
Kanto Picking Center (Yachiyo-machi, Ibaraki)
Ibaraki Picking Center (Yachiyo-machi, Ibaraki)
Hachioji Picking Center (Hachioji-shi, Tokyo)
Niigata Picking Center (Nagaoka-shi, Niigata)
Chubu Picking Center (Wanouchi-cho, Gifu)
Kansai Picking Center (Kobe-shi, Hyogo)
Fukuyama Picking Center (Fukuyama-shi,
Hiroshima)
Kyushu Picking Center (Yoshinogari-cho, Saga)■ Distribution Centers
Hokkaido Distribution Center(Ishikari-shi, Hokkaido)
Tohoku Distribution Center(Sagae-shi, Yamagata)
Kanto Distribution Center(Yachiyo-machi, Ibaraki)

Independent
warehousing andtransportation
operations forappropriate response
to customer needs

Hachioji Distribution Center(Hachioji-shi, Tokyo)
Tokai Distribution Center(Nagaizumi-cho, Shizuoka)
Chubu Distribution Center(Wanouchi-cho, Gifu)
Kansai Distribution Center(Kobe-shi, Hyogo)
Fukuyama Distribution Center(Fukuyama-shi, Hiroshima)
Kyushu Distribution Center(Yoshinogari-cho, Saga)

Distribution Center

FP Corporation Report 2020

40

The FP Corporation Value Chain

Logistics

余余Management at warehouses starting withstorage
Products manufactured at plants and transported from otherwarehouses are stored in warehouses and preparations forshipping are made.

Strict inventory
management
and thoroughstreamliningof cargo
movements

Location Management System

Automatic Guided Vehicles (AGVs)

This system for the flexible utilization of space makes the most of

FP Corporation introduced its first AGVs in 2017. Today, they are

the limited space in the warehouse. Instead of placing cases inutilized in five distribution centers. AGVs run as programmed on

fixed locations, it uses idle space in order. This is indispensablea single black line on the floor, which can be likened to the rails

to the FP Corporation Group, which stores as many as 3 millionof a train. After the introduction of AGVs, the running distance ofcases.

forklifts in the warehouse was reduced to one third of what it had
been. Thus, they are significantly contributing to the efforts toaddress the labor shortage.

(1) Receiving instructions through their ears
At the start, picking staff receive verbal instructions on
their work area through the headset. Next, the instructions
successively specify a large category and then a smaller zone
to finally specify the item to be picked in the area.

(2) Orally checking the instructions via a
microphone before picking items
The staff confirm each instruction they received through theear by repeating it through the microphone. If the words
repeated are different from the instruction, an error is issued
and the staff will have to repeat the process. Confirming
instructions as described above, the staff place items one by
one onto the mobile shelf.

(3) Inspection and packing
Inspection staff check the set of items on the moving shelf
one by one using bar codes. They check if the set contains
the correct items. If all of the items are correct, the set ispacked and moved to the shipping area.

41

FP Corporation Report 2020

High efficiency
voice picking
system withnear-zeroerrors余余Shipping, delivery and return trucks
The work of moving stored cases to the shipping berth, where shipping trucks are parked, has largely been automated. We actively use
empty trucks after delivery for the recycling operations.

Cross Dock Center

Sorter System

Large distribution
centers and warehouses are linked
through sorters to
reduce the time andlabor necessary forshipping.

The sorting of carg o g a t h e re d a teach of tens ofberths is automated.

Loading and delivery

Collection of used containers
The sizes of the cases
and loading methods
are adjusted to makethe most of the space
available in the trucks.

We are taking various measures and efforts to ensure the continuous, unfailingdelivery of products when customers need them.
Route PlannerThis system draws up the most efficient plan for vehicle assignment andAfter delivery, theempty trucks returnloaded with containers collected at supermarkets andother collection
points.

Variousmeasures toachieve accuracy
in delivery timedelivery routes for transportation from production plants to warehouses,
between warehouses and from warehouses to customers on the basis ofdata from the previous six months.

RD Check System
RD stands for real-time delivery. It performs real-time monitoring of
all statuses, from the start to the end of deliveries, using QR codes.
Accumulated delivery data is used to improve the accuracy of the RoutePlanner. The system enables sales staff to view the status of deliveries.

Emergency Power Generation Facilities
Containers for food sold at supermarkets and other retailers are essential
even during a natural disaster or other emergency. Our 21 distribution
centers across the country are equipped with emergency power
generation facilities that are capable of supplying power for up to 72
hours.

FP Corporation Report 2020

42

The FP Corporation Value Chain

Sales

FP Corporation always contemplates product proposals thatcan respond to customer needsfrom the standpoint of food sales
operations.

Propelling the cycle of manufacturing, sales and recycling food trays
and containers

The FP Corporation Value Chain

Visiting frequency

Problem solving
Information sharing

FP Corporation’s key terms in sales

100-factor analysis
Proposals on selling spaces
In addition to visiting the selling spaces of our customers frequency, it is vitalthat we visit them with definite goals. These days, we use a slogan analogous
to the PDCA cycle, the See-Think-Plan-Do process. Seeing and thinking
is analyzing. We have defined 100 items as benchmarks for analysis.
Individual sales staff members make close analyses of food selling spaces
to reveal new discoveries. They come up with many interesting ideas
and solutions to the problems facing food retailers. We all share andimprove these ideas to propose optimal solutions to our customers
on the basis of a common perception.

Masanobu Takahashi
Executive Vice President and Director,
Executive General Manager of Sales Division

43

FP Corporation Report 2020

FPCO Fair

Sales philosophy
with a consistent focus on
the hands-on approachbased on the belief that
customers have theanswers

余余Real-time observation of food retail operations to gain practical information“Go to your customers, and your way will surely be opened.” This phrase reflects the philosophy of FP Corporation’s founder Yasuhiro
Komatsu regarding sales activities. Food trays and containers are used for food sales. Therefore, sales staff should visit supermarkets andconvenience stores, the places of food sales, to closely watch what happens there and gain practical knowledge. FP Corporation believes
that we can find clues to manufacturing and selling good products by watching food retailers displaying goods for sales and consumers
choosing goods for purchases.

余余Direct feedback from customers at selling spaces
Our sales staff do not only watch food sales operations. They actively
communicate with the staff of the supermarkets we serve. In today’ssociety, needs related to food lifestyles are always changing. We
take the stance that it is necessary to think about how to respondto problems in food sales and to identify the improvements that areneeded.

余余Paying attention not only to selling spaces but also
to back rooms
The problems facing our customers include several issues related
to preparations for food sales that occur behind the selling spaces.
Needs for a response to the labor shortage, for short-time work
during busy time slots and other needs for the streamlining of preparations for sales have been growing, particularly in recent years. We
listen to customers and always seek to use our products to resolvethese issues.

FP Corporation Report 2020

44

Proposing selling
approaches and selling
The FP Corporation Value Chain
spaces that utilize FP
Corporation products
from customer
余余Selling space
viewpoints
proposal sessions

Sales

for customers held at
FP Corporation

These sessions invite supermarket operators to FP
Corporation and present proposals on the creationof food selling spaces. They mainly include analyses
of food consumption trends, the construction of
selling spaces for popular goods and proposals forusing our products in the creation of these spaces.
Some large sessions at the Tokyo Headquarters andthe Osaka Branch have attracted more than 100
participants. Sessions are held regularly throughout
the year.

余余Sales for collaborative value creation with food manufacturers (Team X)
Among the various proposal-based sales activities conducted by FP Corporation, sales activities for collaborative value creation (TeamX) are implemented in a creative style. They are not carried out solely by FP Corporation, but are creative sales activities for collaborative
creation with other companies. A typical example is our collaboration with food manufacturers. We plan marketable food recipes together
with prepared food vendors and manufacturers of seasonings and commercialize them, capitalizing on the advantages of our products.

Power Salad is an example of the collaborative creation of salads as main dishes, with a manufacturer of seasonings.

Power Salad withstrawberries and smokedsalmonPower Salad with thick baconslices and grilled vegetables

Containers that best realize theobjective of recipe development
and showcase the productimage are used to create fooditems with superior taste andappearance. In addition, we
think about how the developed
food items will be displayed.

Power Salad with mayomarinated shrimp and cauliflower

FPCO Fairs exhibit a large
number of jointly developed
food items.

45

FP Corporation Report 2020

Unique sales
communications at
the FPCO FairAt the FPCO Fair, we make our largest presentation of containers and services to propose solutions to the problems we havelearned about from customers through our communications with them on site throughout the year and showcases successful examples and predictions about the future. In March every year, we invite approximately 15,000 visitors to Tokyo Big Sight for a threeday event featuring presentations including those detailed below, to propose innovative solutions that meet visitors’ expectations.
The fair provides us with an opportunity to communicate closely with our customers, thus conducting efficient sales activities.

余余Mock-ups of selling spaces

余余Displays separated by food category

Mock-ups of supermarket and

The Displays are organized byother selling spaces are set up

food category, with meat, freshat the venue. Actual food items

fish, hot and cold precooked

are displayed to give visitors afoods, sushi and rice andconcrete image of the potential.

other foods displayed together
to enable visitors to view thedisplays efficiently.

余余Tasting

余余Presentations

Tasting is an indispensable

Our presenters deliver pas-part of giving visitors a real,

sionate explanations about ourdelicious food experience using

products and ideas that we

FP Corporation products.

strongly want to be known andunderstood.

余余No restrictions on taking photos or video

余余Audio guideAll displays in the venue may be

When our sales personnel who

photographed or filmed. One

assist the visitors are absent orof the goals of the FPCO fair isunable to accompany them, weto encourage visitors to takeprovide an audio guide voice,these proposed ideas back towhich is accessible by scan-

their companies and put themning a QR code.

into practice.

In the current fiscal year, due to the COVID-19
pandemic, we decided at the last moment not to invite
visitors to the FPCO Fair. However, we will prepare
displays. They will be used mainly for employee training.
They will be filmed and the videos will be made available
to our customers at a later date. If you are interested,
please contact the sales office nearest to you.

FP Corporation Report 2020

46

The FP Corporation Value Chain

Recycling
Propelling the cycle of manufacturing, sales and recycling food trays and

The recycling process completes
the cycle of the FP Corporation
Value Chain. It makes used containers into environmentally friendly
products.

containers

The FP Corporation Value Chain

The percentage of used foam trays that are put to the recycling system is still as low as 30%. We are working hard to collect usedproducts.

The number of collection points that we operate for used trays and containers
increased from 9,260 in the previous fiscal year to 9,390. Given that plastic
waste is a much talked about issue, environmental awareness appears to bebuilding among consumers. No matter how quickly the amount of usedproducts collected rises, we in the recycling section must deal with it.
To do this, we are currently planning to introduce robots and artificial
intelligence (AI) in the process of sorting used trays and containers
in an effort to reduce the labor required. Another possible solution
is to secure warehouse space to regulate the amounts being
processed and increase work efficiency. We will do anything
we can to respond to the needs of society.

Hidehisa Kaneda
Operating Officer,
General Manager of Recycling Department

47

FP Corporation Report 2020

Used trays and containers collected all over the country are separated into foam trays and transparent containers at different sorting
centers and transported to the Kanto, Chubu and Fukuyama Recycling Plants. Used foam trays transported to the Fukuyama Sorting
Center. They are reprocessed into products at the neighboring recycling plant.

Hokkaido Volume Reduction Center■ TRAY RECYCLING PLANTS(Ishikari-shi, Hokkaido)● TRAY / TRANSPARENT CONTAINER SORTING AND VOLUME REDUCTION CENTER■ PET RECYCLING PLANTS

Kanto Recycle Center
Kanto Recycling Plant
Kanto PET Recycling Plant
Kanto Sorting Plant(Yachiyo-machi, Ibaraki)

Nationwide
recycling network

Yamagata Sorting Plant(Sagae-shi, Yamagata)

Matsumoto Sorting Plant(Matsumoto-shi, Nagano)

Kanazawa Sorting Plant(Kanazawa-shi, Ishikawa)

Tokai Sorting Plant(Nagaizumi-cho, Shizuoka)

Chubu Recycle Center
Chubu Recycling Plant
Nishinomiya Sorting Plant
Kyushu Sorting Plant(Nishinomiya-shi, Hyogo)(Kanzaki-shi, Saga)

Chubu PET Recycling Plant
Chubu Sorting Plant

Fukuyama Recycle Center(Wanouchi-cho, Gifu)

Fukuyama Recycling Plant
Fukuyama Sorting Plant(Fukuyama-shi, Hiroshima)

FP Corporation Report 2020

48

The FP Corporation Value Chain

Recycling

Operated in collaboration with consumers, supermarkets, packaging
wholesalers, FPCO Method Recycling commenced around 30 years
ago. Since then, the number of people supporting this initiative has
increased. Today, there are approximately 9,400 collection points allover the country. In 2012, we also began recycling used PET bottles
into transparent containers. Even with all of these efforts, we stillcollect only around 30% of all used foam trays. We hope that more

The FPCO Method
Recycling Based on
Collaboration between
Four Parties

parties will take part in the recycling initiative, enabling us to produce
more environmentally friendly products.

Collection
Used foam trays, transparent
containers and PET bottles arecollected from approximately 9,400
collection points nationwide.

Cleaning / Drying
Instead of throwing away thecontainers, consumers washand dry them together withdirty dishes after a meal, andthen take the containers to acollection box.

Supermarkets and Other Retailers
Consumers

Use
Foods contained in the purchased
containers are used for cooking, processing and served to enrich the dining
tables of consumers.

49

FP Corporation Report 2020

Sales
Meat, fresh fish, precooked foods,
packed lunches, fruit and otherfoods are put into containers, displayed and sold.

Storage and Transportation
Packaging material wholesalers collectused containers after deliveries to supermarkets and other retailers. The collectedcontainers are temporarily stored before
they are transported to the recycling facilities of FP Corporation.

Recycling
The containers are taken to FP Corporation’s sorting centers and recycling plants,
where they undergo several processes tobe recycled into new products.

FP Corporation
Packaging Material Wholesalers

Production
Production at 18 plants
across Japan. FP Corporation manufactures many
eco-friendly products using
recycled materials.

Distribution
Packaging material wholesalers that have purchased FP
Corporation products deliver containers to supermarkets andconvenience stores.
FP Corporation Report 2020

50

Facts about FP Corporation
SUMMARY OF HUMAN RESOURCES DATA
Statistics on Employees(as of the end of March 2020)
Number of employees
Average Age

SUMMARY OF ENVIRONMENTAL

Male

Female

Total

606

279

885

43.4

34.2

40.5

Under 30

114

107

221

30 - 39

127

99

226

40 - 49

165

55

220

50 - 59

153

14

167

60 and older

47

4

51

Continuous Years of Employment

15.5

10.7

13.9

Number of Employees (Consolidated)

3,459

1,025

4,484

0

1

1

Number of Foreign Employees

Number of Resignations
FY2019New Graduate Employee Retention Status
Number of Graduate Employees
Hired in April 2017
Number Remaining in April 2020

Percentage of Female Employees inManagerial Positions

Manufacturing Division FY2019 Data
(Annual Production Values)
Electricity
EnergyWater Supply

I
N
P
U
T

Companymandated

Transfers

Other

Total

0

16

0

0

1

17

Total

17

16

33

16

14

30

FemaleMale

Percentage ofFemale Employees

23

319

6.7

FY2017FY2018FY2019Actual Number 

377

359

358

13.78

13.6

13.3

Disability Employment Rate (%)

Industrial Water
Raw Materials(Resins, etc.)
Secondary Materials

Cardboard
Packaging Plastic
Thinners
Paper

Employment of Persons with Disabilities(persons)

Groundwater

Lubricating Oil

Voluntary

FemaleWater Resources

Other

Early

Male

Energy from Fossil
Fuels

O
U
T
P
U
T

Product

Product
Manufacturing
WeightNumber of Truck
Shipments

Waste
Soot and Dust
NOx
Environmental Pollutants

BOD
COD
SS

Logistics Division FY2019 Data (Annual
INPUT
Electricity
EnergyEnergy from
Fossil Fuels

Water Resources

Water Supply

Other

Paper

OUTPUT
Waste

Work-life Balance

FY2017FY2018FY2019Percentage of Paid Leave Taken (%)

39.5

51.7

53.6

18.9

10.0

9.8

Average Monthly Hours of Overtime
Worked Per Person
Number of Employees Taking
Maternity Leave(persons)
Number of Employees Taking
Childcare Leave(persons)
Percentage of Employees Returningfrom Childcare Leave (%)

51

FP Corporation Report 2020

17

25

25

22

16

28

86.7

100.0

92.3

Office Division FY2019 Data (Annual
INPUT
EnergyElectricity

Water Resources

Water Supply

Other

Paper

OUTPUT
Waste

See FPCO by DataDATA

FINANCIAL SUMMARY

368,421,956 kWh
84,911,391 MJ
506,259 m³

Term

54th Term

55th Term

56th Term

57th Term

58th Term

Year and Month of Financial
Results

Mar. 2016

Mar. 2017

Mar. 2018

Mar. 2019

Mar. 2020

Net sales(Million yen)

170,292

172,858

173,580

181,171

186,349

Ordinary income(Million yen)

14,027

15,742

13,54814,861

16,274

Profit attributable to owners ofparent(Million yen)

9,294

10,953

9,178

9,901

10,777

Comprehensive income(Million yen)

8,900

11,440

9,806

9,332

10,461

Net assets(Million yen)

91,591

99,721

106,219

112,198

119,301

Total assets(Million yen)

209,053

219,481244,147

249,332

242,497

Net assets per share(Yen)

2,202.56

2,403.52

2,560.18

2,703.33

2,872.14

Net income per share(Yen)

224.54264.86222.01

239.51260.71

(Yen)

-

-

-

-

-

Equity ratio

(%)

43.6

45.3

43.4

44.8

49.0

Return on equity

(%)

10.6

11.5

8.9

9.1

9.4

Stock price to earnings ratio(Times)

21.4

19.6

31.4

27.3

27.5

Cash flows from operating
activities(Million yen)

20,832

25,912

13,97425,51027,770Cash flows from investing
activities(Million yen)

△17,923△21,932△23,656△17,109△10,989

Cash flows from financing
activities(Million yen)

△1,530

△924

7,197

△4,908△15,643

Cash and cash equivalents at
end of period(Million yen)

15,08918,144

15,65919,151

20,288100,450 m³
89,747 m³
176,879 tons
35,371 tons
3,068 tons
16,504 L
35,602 L
2,736,500 sheets

204,374 tons
159,096 vehicles
28,049 tons
114 kg5,806 kg
11,079 kg

Diluted net income per share

11,139 kg
6,345 kg

Production Values)
18,114,086 kWh
2,599,316 MJ
24,402 m³
9,389,410 sheets

461 tons

Production Values)
2,916,776 kWh
3,202 m³

(Notes) 1. Net sales do not include consumption tax, etc.
2. Diluted net income per share is not listed due to the absence of dilutive shares.

5,373,500 sheets

230 tons

FP Corporation Report 2020

52

FINANCIAL SUMMARY(CONTINUED)
Improving Corporate Value

Stock Price (yen)We conduct shareholder-focused managementin accordance with three basic policies: creatingsuperior, environmentally friendly products,
providing them at competitive prices anddelivering them to our clients when they needthem. We plan to steadily carry out measures forgroup management to increase our corporate
value and achieve our target of a net income of
330 yen per share.

8,500
8,300
8,100
7,900
7,700
7,500
7,300
7,100
6,900
6,700
6,500
6,300
6,100
5,900
5,700
5,500
5,300
5,100
4,900
4,700
4,500

4/18

5

Trend in Stock Price (TSE First Section)

6

7

8

9

10

11

12 1/19

2

3

4

5

6

7

8

9

10

Volume (in thousands of shares)

11

12 1/20 2

3

4

5

7,400
7,200
7,000
6,800
6,600
6,400
6,200
6,000
5,800
5,600
5,400
5,200
5,000
4,800
4,600
4,400
4,200
4,000
3,800
3,600
3,400
3,200
3,000
2,800
2,600
2,400
2,200
2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0

* Listed on the First section of the Tokyo Stock Exchange

Continuously Stable Dividends

Dividend trend

FP Corporation regards providing shareholders with an appropriate
return on their investment as one of its most important goals. Ourbasic policy is to make continuous and stable dividend payments
while increasing our profitability and improving our financial standing.
Under this policy, we paid a dividend of 81 yen per share, including
an interim dividend of 40 yen per share in the fiscal year ended
March 31, 2020.

Net income per share
Dividends
Payout ratio

(Yen)

(%)

40

350

36.5

300
250
200
150
100
50
0

33.8

264
224

239

222

30.3
68
3/16

35

260
31.1

30

81

81

25

3/19

3/20

30.2
80

3/17

81

3/18

(Month/year)

20

Third Party Comments
Mr. Keisuke Takegahara

Executive Officer, Deputy Chief Research Officer, Chief Manager of
Sustainability Management Office, Corporate Planning & Coordination
Department, Development Bank of Japan Inc.

After graduation from the Hitotsubashi University Faculty of Law in 1989, he joined the Japan Development
Bank (currently the Development Bank of Japan) in the same year. He has been in his present position
since 2017, after serving as chief representative in Frankfurt, as head of the Environment & CSR
Department. He served in several public capacities, including being a temporary member of the Central
Environment Council at the Ministry of the Environment and a member of the Ministry of Economy, Tradeand Industry's TCFD Consortium Planning Committee.
The COVID-19 coronavirus is transforming society. During and after the pandemic, it will be completely different from what it had beenin the past. Now that we literally face a sustainability crisis, it is certain that the importance of sustainability will increase. In addition toenvironmental considerations, the role of providing a foundation of secure and stable employment will be further emphasized as a nonfinancial corporate value. As ESG investment becomes mainstream, companies are required to have growth strategies that meet thatdemand. From this viewpoint as well, FP Corporation is an outstanding company. The recycling system based on four party collaboration
can be seen as a herald of the circular economy that originated in Europe. Its distinguished accomplishments include ensuring
recycling and other countermeasures addressing climate change. A social issue that has emerged recently regarding plastics revolves
around inappropriate ways of using them. FP Corporation's business model is focused on utilizing these materials without creating anenvironmental impact. I think this will positively impact your corporate value in the medium and long terms. In addition, you positively
employ workers with disabilities. This system provides a place for them to actively work. These examples highlight your stance of pursuingenvironmental and social value in multiple ways.

53

FP Corporation Report 2020

FP Corporation acquired the naming rights for the Fukuyama-shi general gymnasium and the facility opened on March 23, 2020 under
the name FPCO Arena Fukuyama. However, the COVID-19 pandemic forced the cancellation of the opening event and delayed its
inauguration three days.
The pandemic has spread across the globe and caused significant damage to the Japanese society and economy. Meanwhile, while
consumers have been obliged to refrain from going out and to stay home, demand from them for food purchases and deliveries has led
to a large need for food containers. This gives us mixed feelings. However, the fact that products we manufacture and sell are needed has
renewed our awareness of our responsibilities. This report included a special feature on the utility of food containers. We now have a fresh
determination to continuously produce products that are needed by society and useful in people’s lives.
Thank you very much for reading FP Corporation Report 2020. We would be grateful if you could complete the attached survey and returnit to us for the continued improvement of the report. Thank you in advance for your cooperation.
June 2020
Eiji Togashi
General Manager,
Environmental Management Dept.

Editorial Guidelines

FP Corporation Report 2020
Published: June 2020

Care was taken to clearly note the achievements resulting from each activity and FP Corporation’s future directions
so everyone can understand the essence of our corporation.
 he Environmental Report Guidelines from the Ministry of the Environment (FY2018 edition) were used as aT
reference in preparing the report on FP Corporation Report.
Time period covered: Monday, April 1, 2019 – Tuesday, March 31, 2020
Range of coverage: FP Corporation and the FP Corporation Group

Publishing Department and Contact Information: FP Corporation Environment Management Department

Shinjuku Oak Tower 36F, 6-8-1 Nishi Shinjuku, Shinjuku-ku, Tokyo, 163-6036 Japan
TEL: +81-3-5325-7809 FAX: +81-3-5325-7811 E-mail: Env-FP@fpco-net.co.jp Website: https://www.fpco.jp/en/

FP Corporation Report 2020

54

FPCO
Report 2020
To be a company that links
people with people, people with nature,and companies with society.

FP CORPORATION
Fukuyama Headquarters: 1-13-15 Akebono-cho, Fukuyama, Hiroshima, 721-8607 Japan 

TEL: +81-84-953-1145

Tokyo Headquarters: Shinjuku Oak Tower 36F, 6-8-1 Nishi Shinjuku, Shinjuku-ku, Tokyo, 163-6036 Japan 

TEL: +81-3-5320-0717

Osaka Branch: Dai Building Main Tower 22F, 3-6-32 Nakanoshima, Kita-ku, Osaka, Osaka, 530-0005 Japan TEL: +81-6-6441-2468
Sales Offices: Sapporo, Sendai, Niigata, Shizuoka, Hokuriku, Nagoya, Hiroshima, Shikoku and Fukuoka■Website: https://www.fpco.jp/en/■E-mail: Env-FP@fpco-net.co.jp